For the attention of Australian Workers Union and its members
- Feb 2, 2017
- 2 min read
FOR the attention of Australian Workers Union and its members
FROM a very concerning ex-Onesteel worker
“I worked for Onesteel for well over a decade and was a member of the AWU during this time.
Unfortunately I am also a shareholder in Arrium along with thousands of other Arrium employees.
In 2008 after Onesteel took over Smorgon 230 workers were made redundant.
It was a sorry sight when many of these people entering the mill office to be told they are being made redundant.
The sight of some grown men crying was not nice to witness. The Newcastle Bar Mill lost 220 employees due to synergies.
The total number of job losses Australia wide is unknown.
Arrium Australia has turned a corner regarding future profitability and does not need to be sold off.
Should the company be sold I would expect at least one thousand employees to lose their jobs due to "Synergies and Rationalization".
It appears KordaMentha have taken a one track approach to Arriums insolvency. A sale of the entire company.
As you are aware Molycop has been sold for USD $1.23 billion, at the time of the final transaction the Australian dollar had dropped to 72 cents which would equate to AUD $1.7 billion dollars. After sales commissions this would net around $1.6 billion Australian dollars. This would reduce the $2.8 billion down to a very manageable $1.2 billion debt.
The current lenders have the capacity and means to simply refinance the remaining debt should they wish to do so.
The Arrium Shareholders United group have sent a proposal to the banks. This would avoid over 1,000 employees being made redundant as well as avoiding close to 80,000 predominately Australian shareholders and employee shareholders having their company being taken from them.
As members of the creditors committee I urge you to challenge the sale of this Australian company and prevent these job losses.
Are your members aware of the potential job losses? I would personally not like to be in your positions of voting for a sale of the company and simultaneously jeopardizing your members employment.
We don't appear to hear anything positive from KordaMentha regarding the positive improvements in the companies viability.
But most people know of the dramatic change in the fundamentals of the business such as the vast improvements in the price of iron ore and steel….”
Comments